Tanzania's inflation increases by 0.8 percent in May

Inflation in Tanzania increased by 0.8 percent in May, caused by depreciation of the local currency which increased the prices of goods, the east African nation's National Bureau of Statistics (NBS) said on Monday.

Ephraim Kwesigabo, NBS Director of Population Census and Social Statistics, said the annual headline inflation rate increased from 4.5 percent in April to 5.3 percent in May, with food and non- alcoholic beverages contributing highly to the increase.

Statistics showed that the country entered this year with low inflation rate of 4 percent in January after it recorded 4.8 percent in December 2014.

However, Kwesigabo said, the inflation started going up to 4.2 percent in February, 4.3 percent in March and 4.5 percent in April.

"This shows how people's purchasing power has continued decreasing as the result of increasing prices of goods and services," he said.

Out of measured 12 groups of items consumed in 12 months at home, 11 recorded increase in price while only one had price decrease.

Food and non-alcoholic beverages recorded highest increase by 8. 5 percent, followed by alcoholic and tobacco by 5 percent, restaurants and hotels by 4.6 percent, clothing and footwear by 3. 9 percent and education by 3.3 percent.

"Overall index also increased to 157.86 in May this year from 157.21 recorded in April," said Kwesigabo.

Food items that contributed to this increase include maize flour by 4.0 percent, maize grain by 3.3 percent, fresh fish by 2. 1 percent, banana by 9.4 percent, vegetables by 2.1 percent, round potatoes by 3.8 percent and beans by 3.3 percent. Endi